If 11,800 levels get violated decisively on the downside then we might witness further sell-off in prices towards 11,700 levels as well.
The Indian markets kick-started this week on a negative note with the Nifty slipping well below 11,900 mark tracking weak global cues and as traders unwound long positions at higher levels.
On the derivative front once again, Call writers were seen adding hefty open interest (OI) at 11,900, and 12,000 strikes which point towards a limited upside into the prices.
On the other hand, Put writers were are also seen shifting to lower bands with narrow open interest build up. From the technical front, the Nifty is currently trading near the crucial support levels of 11,850-11,800 levels and can be considered as make or break level.
In the coming session, if 11,800 levels get violated decisively on the downside then we might witness further sell-off in prices towards 11,700 levels as well.
As far as Bank Nifty is concerned, 31,500 levels would be crucial hurdle levels on the higher side and the index may trade under pressure as far it is holding below that. On the downside, the immediate support for Nifty is placed at 30,850 for Bank Nifty.
Here is a list of top three stocks which could give 8-13 percent return in the next three to four weeks:
JB Chemicals & Pharmaceuticals: Buy| LTP: Rs 422| Target: Rs 480| Stop Loss: Rs 385| Upside 13%
The stock has been consistently trading in a rising channel with the formation of higher highs and higher bottom pattern on the daily as well as on the weekly interval.
At the current juncture, the stock has given a fresh breakout above the key resistance level of Rs 415 with big volumes which suggest more upside into the prices in the coming sessions.
Traders can accumulate the stock in the range of Rs 420-422 for the upside target of Rs 480 levels, and a stop loss can be placed below Rs 385.
Dr Reddy's Laboratories: Buy| LTP: Rs 2,896| Target: Rs 3,125| Stop Loss: Rs 2,730| Upside 8%
The stock has been consistently trading well above its short and long-term moving averages on the daily as well as on the weekly interval.
In the recent past, it has given a breakout above the inverted head and shoulder pattern. It is holding above the neckline of the pattern formation which is placed around Rs 2,800 levels.
However, at the current juncture, the stock has formed a rounding bottom pattern and once again positive divergence on the RSI suggests for the next up move into prices in the coming sessions.
Traders can accumulate the stock in the range of Rs 2,890-2,895 for the upside target of Rs 3,125 levels, and a stop loss could be placed below Rs 2,730.
Eris Lifesciences: Buy| LTP: Rs 475| Target: Rs 532| Stop Loss: Rs 435| Upside 12%
After consolidating for more than three months weeks in a broader range of Rs 410 to Rs 460, the stock has given a sharp breakout above its 100-Days exponential moving average on the daily interval.
The breakout happened with hefty volumes which suggest long build-up into the prices. On the weekly charts as well, the stock moved above its short-term moving averages along with positive divergence on the secondary oscillators.
Traders can accumulate the stock in the range of Rs 470-475 levels for the upside target of Rs 532 levels, and a stop loss can be placed below Rs 435.
The author is Senior Technical Analyst at SMC Global SecuritiesDisclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.